Tata Motors CV: Beyond the cycle: Share gains, resilient margins & Iveco upside

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Tata Motors CV: Beyond the cycle: Share gains, resilient margins & Iveco upside

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Tata Motors CV

Beyond the cycle: Share gains, resilient

margins & Iveco upside

Reiterate Rating: BUY | PO: 470.00 INR | Price: 406.60 INR

Beyond the cycle, market share gains taking shape 16 June 2026

Much of the investor debate on TMCV offlate has centered on CV cycle, overshadowing Equity

the underlying product and market-share story. Our view on CV cycle is constructive. We

expect FY27 demand to see some deferment given macro, but the fundamental recovery

Key Changesshould play out over the next 2-3 years. Looking beyond cycle, Tata’s sharp product

segmentation, new launches/ refreshes and connected features seem to be delivering (Rs) Previous Current

results. TMCV has gained share in heavy trucks (60%, >25T), aided by recent upgrades 2027E EPS 16.77 17.51

that improve payload & fuel efficiency for operators. In Small CVs too, the ACE Pro 2028E EPS 19.91 20.92

launch & push in 2-3.5T segment have helped stabilize market share. Additionally, new

Azura ICV range, electric platform and safety-series trucks strengthen Tata’s competitive Gunjan Prithyani >> Research Analyst

positioning. We update our model for full year annual report post demerger (EPS +4%, BofAS India

lower dep & higher other income). Adj valns at 10x F28 EV/EBITDA offers good risk +91 22 6632 8246 gunjan.prithyani@bofa.com

reward. Buy. Eshan Bhargava >>

Margin resilience looks more structural… ResearchBofAS IndiaAnalyst

Another key investor debate is the impact of commodity headwinds and whether pricing +91 22 6632 3004 eshan.bhargava@bofa.com

discipline could crack. Management focus on margin is quite unambiguous, and priority

is pricing discipline over ‘growth for sake of it’.